CapitaLand Integrated Commercial Trust (Merger CMT & CCT)

[winston]

Not vested

CAPITACOMMERCIAL TRUST - Singapore's CapitaCommercial Trust, managed by CapitaLand , said on Thursday its third quarter distributable income rose 7.9 percent to S$56.2 million ($43.16 million) from a year ago mainly due to lower property tax and operating expenses.

Source: Reuters

[winston]

Not vested. From CIMB:-

In line; maintain Neutral with higher target price of S$1.41 (from S$1.27).

3Q10 results met Street and our expectations with 9M10 DPU of 5.9cts forming 78% of our FY10 forecast. We maintain our estimates and roll over our DDM target price to CY12, raising it to S$1.41 (from S$1.27) with an unchanged discount rate of 7.8%.

CCT trades at book value and offers a prospective dividend yield of 5.2%. In our last report, we estimated 7-8% DPU accretion assuming acquisitions of S$800m at NPI yields of 5.6% (which could raise our target price to S$1.46).

However, in view of recent Grade-A transactions (Marina Bay Financial Centre and Chevron House) at under 4% net yields, acquiring at our estimated yields and accretion appear difficult, without income support at those levels.

Announcements of accretive acquisitions and better-than-expected rental reversions for leases expiring in 2011 would provide re-rating catalysts, in our view.

http://www.remisiers.org/cms_images/CCT-2110101.pdf

[winston]

Not vested

CapitaCommercial Trust reported a 4.7 percent year-on-year drop in its third quarter gross revenue to S$97.8 million, but still managed a 7.9 percent rise in distributable income to S$56.2 million due to lower property tax and interest savings.


Source: Reuters

[winston]

Not vested. From Kim Eng:-

Action & Recommendation

While we continue to expect CMT to deliver similarly steady performance in the future, further positive catalysts may come from its possible participation in greenfield development projects, in partnership with its
sponsor CapitaMalls Asia.

Maintain BUY with a DDM‐derived target price of $2.27.

http://www.remisiers.org/cms_images/cmt25102010ke.pdf

[winston]

Not vested

RESEARCH ALERT- Citi cuts CapitaCommercial target to S$1.47

SINGAPORE, Feb 8 (Reuters) - Citigroup has cut its target price for Singapore's CapitaCommercial Trust to S$1.47 from S$1.50 and kept its "hold" rating.

STATEMENT: Citi has lowered its distribution per unit estimates for CapitaCommercial Trust by 2-3 percent over the next 2-3 years to account for higher interest expenses as it expects any bulk repayment of debt to be likely in 2012.

The brokerage also lowered its estimates as it expects lower income from one of CapitaCommercial's property in downtown Singapore as it undergoes asset enhancement work this year.

At 0330 GMT, shares of CapitaCommercial were flat at S$1.49, and have fallen 0.7 percent so far this year.


Source: Reuters

[winston]

Not vested

RESEARCH ALERT-UBS ups CapitaMall Trust to buy, target S$2.06

SINGAPORE, Mar 24 (Reuters) - UBS upgrades Singapore's CapitaMall Trust , which owns shopping malls in Singapore, to buy from neutral but kept its target price at S$2.06.

STATEMENT: UBS has upgraded CapitaMall Trust as it said its recent share price correction represented a good entry point for exposure to a well-managed retail portfolio, especially in an environment with higher inflation expectations.

UBS said it expects Singapore to see higher visitor arrivals of 12.7 million this year, which bodes well for retail sales.

CapitaMall Trust achieved positive rental reversion of 6.5 percent in 2010, which UBS expects the trust to achieve going forward.

At 0357 GMT, CapitaMall Trust shares were 3.9 percent higher at S$1.88 on a volume of 6.9 million shares.


Source: Reuters

[winston]

Not vested

RESEARCH ALERT-C.Suisse cuts CapCom Trust to S$1.70, keeps outperform

SINGAPORE, April 20 (Reuters) - Credit Suisse has lowered its target price for CapitaCommercial Trust , a real estate investment trust managed by Southeast Asia's largest property developer CapitaLand , to S$1.70 from S$1.81 but kept its outperform rating.

STATEMENT: CapCom Trust said on Tuesday it plans to jointly develop Market Street Car Park in Singapore with parent CapitaLand into a Grade A office tower at a cost of around S$1.4 billion ($1.1 billion). [ID:nSNZ42l4pQ] CapCom Trust will own 40 percent and CapitaLand will hold the remaining stake. The redevelopment is expected to be completed before the end of 2014.

Credit Suisse said the guided stabilised yield of 6 percent per annum translates into gross rent of S$12 per square foot (psf) a month, which it believes is a little conservative as the current asking rents for super prime A property are already at the S$12-12.50 psf levels.

But the brokerage said the redevelopment is CapCom Trust's best option at this stage for the redeployment of its cash pile given the extremely competitive merger and acquisitions environment.

CapCom Trust reported on Tuesday first quarter distribution per unit of 1.84 Singapore cents, down 4.7 percent year-on-year, hurt by the loss in rental income resulting from sales of Robinson Point and StarHub Centre. [ID:nSNZ5B9YT1] At 0146 GMT, CapCom Trust shares were flat at S$1.41 on a volume of 2.6 million shares.

Source: Reuters

[winston]

Not vested

CAPITAMALL TRUST - CapitaMall Trust, which owns shopping malls in Singapore, said on Wednesday its first quarter distribution per unit rose 3 percent to 2.29 Singapore cents from a year earlier, helped by riverfront property Clarke Quay, as well as higher rental rates from new and renewed leases.

Source: Reuters

[winston]

Not vested

Downgrade to HOLD on valuation grounds.

We have factored in contributions from both the retail mall and office building into our valuation, commencing on Dec 2013 and Jun 2014 respectively.

Out total development costs for CMT works out to about S$469m, which accounts for 5.8% of CMT's total assets as of 31 Mar (within the property fund guideline of 10% development cap).

CMT has guided that it is targeting rentals of S$16-S$18 psf pm and S$7-S$8 psf pm for the retail and office segments respectively, with an initial yield-on-cost of 6%.

According to our model, these targets are fairly tight and require somewhat vigorous occupancy rates in the first year to attain the desired 6% yield. In addition, unlike the Tampines Regional Centre, which is hailed as the "financial hub in the east", the Jurong precinct does not have a strong financial institution catchment base.

We therefore remain wary of
(1) the office take-up in that area, with the nearby International Business Park, JTC summit and iHub buildings offering cheaper alternatives and
(2) "retail tenants' fatigue" among the four malls within a 500m radius from the MRT station.

Moreover, CMT's share price has appreciated 6.5% since our last report dated 21 Apr.

Downgrade to HOLD on valuation grounds with an increased fair value of S$2.05 (prev: S$2.02).

We will turn buyers at S$1.93. (Ong Kian Lin)

Source: OCBC

[winston]

Not vested

RESEARCH ALERT-OCBC downgrades CapitaMall Trust to hold; target S$2.05

SINGAPORE, June 6 (Reuters) - OCBC Investment Research has downgraded CapitaMall Trust (CMT) to hold from buy following the REIT's purchase of a site in western Singapore.

The bank, however, slightly raised its target price for CMT to S$2.05 from S$2.02. CMT's main assets are shopping malls in Singapore.

STATEMENT: CMT and sister firms CapitaMalls Asia and CapitaLand have clinched the tender for the Jurong Gateway Site in western Singapore for S$969 million ($788.1 million).

The total development cost is expected to be around S$1.5 billion. CMT has a 30 percent stake in the joint venture which will be building a retail-and-office property at the site.

The joint venture is targeting rentals of S$16-18 per square foot per month (psf pm) for retail and S$7-8 psf pm for the office segment, with an initial yield-on-cost of 6 percent, OCBC said.

The brokerage said the target requires rather high occupancy rates in the first year, adding that it remains wary of the office take-up as nearby buildings offer cheaper alternatives.

The four malls located in the area will also compete for retail tenants.

It added that CMT's share price has risen 6.5 percent since its last report dated April 21.

At 0317 GMT, CMT shares were down 0.5 percent at S$1.97 on a volume of 1.3 million shares.

Source: Reuters